Notes to Accounts of Artson Engineering Ltd.

Mar 31, 2015

1. The Cash Flow Statement has been prepared following the indirect
method except in case of Purchase and Sale of investments and Taxes
paid which have been considered on the basis of actual movement of cash
with necessary adjustments in corresponding Assets and Liabilities.

2. Cash and Cash Equivalents represent Cash and Bank Balances only.

3. Corporate Information

Artson Engineering Limited ("the Company") is a company limited by
shares incorporated under the Companies Act, 2013. The Company's
Registered Office is situated at Mumbai. The Company's shares are
listed on the Bombay Stock Exchange (BSE) and the Scrip Code is 522134.

The Company was incorporated in the year 1978 and since inception, the
Company has commissioned, on turn-key basis, several fuel storage and
handling facility systems. The Company is in the business of
Engineering, Procurement & Construction contract in Oil, Gas &
Hydrocarbon (OG&H) Sector and ancillary services, including
manufacturing activity.

The Company was referred to the BIFR as a sick company under the
provisions of Section 3 (1) (O) of the Sick Industrial Companies
(Special Provisions) Act, 1985. The Company's reference as a sick
company was registered under Case No. 152/ 2004 with the BIFR. At the
hearing held on 27th November 2007, the BIFR sanctioned the
Rehabilitation Scheme of the Company and the Order sanctioning the
scheme of rehabilitation was received by the Company on 18th December
2007 (Sanctioned Scheme). The Company has made an application on 17th
October 2013 for extension of the Rehabilitation Scheme as referred
above and pending the final hearing, the Sanctioned Scheme is under
implementation.

b. Terms/rights attached to equity shares

The Company's issued, subscribed and paid-up capital comprises of
equity shares only and no preference share have been issued. The
Company's paid-up capital comprises only one class, i.e. equity shares
having par value of Rs. 1 per share. Each holder of equity share is
entitled to one vote per share.

The liability of the members is limited.

The Company's shares are listed on the Bombay Stock Exchange Limited
(BSE).

Restriction on distribution of Dividend

Pursuant to the Provisions of the Sanctioned Scheme, the Company is not
permitted to declare any dividend to the equity shareholders without
the prior approval of the BIFR/Monitoring Agency (MA) during the period
of rehabilitation.

c. No bonus shares have been issued, no shares have been issued for
consideration other than cash and no shares have been bought back
during the last five years

e. Reduction in paid-up value of equity shares

Pursuant to the provisions of the Sanctioned Scheme, effective 26th
December 2007 the paid-up value of the equity shares has been reduced
from Rs. 10 per share to Rs. 1 per share fully paid-up. On reduction,
the paid-up capital of the Company was reduced to Rs. 92,30,000
comprising of 92,30,000 equity shares of Rs. 1 each. On 4th January
2008, the Company allotted 2,76,90,000 equity shares of Rs. 1 each to
Tata Projects Limited. Consequent to the allotment of these shares, the
Company has become a subsidiary of Tata Projects Limited (shareholding
of 75% in the Company's paid-up capital). The Company's paid-up capital
has thus been increased to Rs. 3,69,20,000 comprising of 3,69,20,000
equity shares of Rs. 1 each.

* Term Loan from the Holding Company in terms of the Sanctioned Scheme
of BIFR dated 18th December 2007 secured against the immovable property
and all title deeds of the property.

Based on an in-principle approval granted by the Holding Company for
extension of dates for moratorium as proposed by the Company, the
maturity profile of the loans and their classification into Current and
Non-current has been done for the current year.

The rate of interest is 10% p.a. For further details refer note 36.

The above Maturity Profile may change subject to approval of
modification application made to BIFR as referred in Note 36.

* 1. Working Capital loan from Corporation Bank of Rs. (10.54) Lakh
(Previous year Rs. 2021.45 Lakh) is secured by first charge by way of
hypothecation of inventories, books debts and other current assets.

c. Depreciation for the year 31.03.2015 includes depreciation on
assets whose remaining useful life is NIL as on 01.04.2014.
Accordingly Rs. 16.33 Lakh has been debited to retained earnings as per
Schedule II of the Companies Act, 2013.

5 All the Fixed Deposit receipts are lying with the banks towards
margin money against Bank guarantees issued by Banks.

Note: On grounds of prudence, the Company has recognised Deferred Tax
Asset only to the extent of the future reversal of Deferred Tax
Liability. During the year, there is no reversal of Deferred Tax
Liability (Previous Year Rs. 1.20 Lakh).

Provision for tax under the Income Tax Act, 1961 is not made as
there are no chargeable profits during the year.

* The Company is following Percentage Completion Method for recognising
contract revenue.

* The Company has adopted Completion of Physical Proportion of the
Contract Work Method to determine the stage of completion of
contracts-in-progress.

6 Disclosure in accordance with Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006:

According to information available with the Management and relied upon
by the auditors, on the basis of intimation received from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act), the Company has amounts due to micro
and small enterprises under the MSMED Act as follows:

7 The Company is registered with the Board for Industrial and
Financial Reconstruction (BIFR) as a sick company and BIFR has vide its
order dated 18th December 2007 sanctioned the rehabilitation scheme
("the Sanctioned Scheme"). While most of the provisions of the
Sanctioned Scheme have been implemented, the Company was not able to
achieve positive net worth as at 31st March 2013; accordingly, the
Company has filed application on 17th October 2013 to BIFR seeking an
extension and modification of the Sanctioned Scheme. The modification
also includes conversion of Loans of Rs. 4418 Lakh (including interest
up to 31st March 2013 and loan of Rs. 300 Lakh taken during the three
months period ended 30th June 2013, but excluding interest of Rs. 94.27
Lakh for the three months period ended 30th June 2013) of the Holding
Company as at 31st March 2013 into 4% Optionally Convertible Cumulative
Redeemable Preference Shares of Rs. 1/-each, which is pending for
approval from BIFR. In view of this, and based on written confirmation
from the Holding Company, no provision has been made for interest
payable to it amounting to Rs. 705.60 Lakh for the period 1st July 2013
to 31st March 2015 (including Rs. 403.04 Lakh for year ended 31st March
2015 ). The Management is considering various alternatives for
achieving profitability and positive cash flow. Based on the current
order book position, operating results for the current year and
considering the continued support of the Holding Company, barring
unforeseen circumstances, the Management is confident about the
Company's ability to continue as a going concern and the Auditors of
the Company have put an "emphasis of matter" paragraph on the aforesaid
matter in the Auditor's Report for the year ended 31st March 2015.

8 a. In the opinion of the Management, all Current Assets, Loans &
Advances are approximately of the same value if realized in the
ordinary course of business. Provision for all the known liabilities
and doubtful receivables is adequately made.

c. Balance outstanding against Trade Receivable and Trade Payable
(including debit balances), are subject to reconciliation and
confirmation with respective parties. Provision of Rs. 276.23 Lakh
(Previous Year Rs. 43.37 Lakh) for doubtful debts is made during the
year; resulting in total provision of Rs. 497.60 Lakh as at 31st March
2015.(Previous Year Rs. 221.37 Lakh).

d. Long term Loans and Advances includes Rs. 300.90 Lakh reimbursement
receivable from client. Provision of Rs. 300.90 Lakh (Previous Year Rs.
162.63 Lakh) has been made during the year.

9 The net Gain on account of exchange rate difference amounting to Rs.
2.84 Lakh (Previous Year Loss of Rs. 14.54 Lakh) has been accounted in
the Statement of Profit and Loss in compliance with AS-11.

10 Quantitative Details:

a. Erection / Construction Activities:

In respect of Erection / Construction activities, the materials
procured by the Company are directly delivered to the project sites and
charged off in the year of purchase. It is not practicable to furnish
the quantitative information in respect of these items due to
diversified size and nature of business.

11 Effective 1st April 2014, the Company has changed the estimated
useful life of group of assets in line with the recommended useful life
as per Part C of Schedule II to the Companies Act, 2013. As per para 7
(b) of Notes of Part C of Companies Act, 2013, where the remaining
useful life of an asset as on the effective date is nil, the carrying
amount of the asset should be recognised in the retained earnings. Such
carrying amount as on 1st April 2014 for the Company is Rs. 16.33 Lakh.

12 The Company has not contributed any amount towards Corporate Social
Responsibility (CSR) in terms of Section 135 as there are no profits
attributable to CSR.

13 The Company has taken factory premises under cancelable and
non-cancelable operating lease. The lease agreement is for two years
and option of renewal on expiry of lease period is based on mutual
agreement. Rental expenses towards cancelable and non cancelable
operating lease charged to Statement of Profit and Loss amount to Rs.
6.00 Lakh ( Previous Year Rs. 4.00 Lakh).

14 In line with accepted practice in construction business, certain
revisions of costs and billing of previous year which have crystallised
during the year have been dealt with during the current year.

15 The Company has filed in October 2013 a Miscellaneous Application
(No.536 of 2013)("MA") with the Board for Industrial and Financial
Reconstruction ("BIFR") containing various proposals for modifications
to the Sanctioned Scheme. The said MA is pending with the BIFR. Vide
one of the proposals contained in the said MA, the Company has sought
exemption from the appointment of Managing Director (MD)/Manager
(M)/Whole-time Director (WD). During the course of the proceedings
before the BIFR, a legal opinion has also been submitted on the matter.
Accordingly, the Company has not appointed any MD/M/WD, which is one of
the categories of the Key Managerial Personnel (KMP) under the
Companies Act, 2013. The Company has appointed qualified and
experienced KMP in other categories viz. Company Secretary and Chief
Financial Officer.

16 Previous year's figures have been regrouped and restated wherever
necessary to make their classification comparable with that of the
current year.

Mar 31, 2014

1. Corporate Information

Artson Engineering Limited ("the Company") is a company limited by
shares incorporated under the Companies Act, 1956 The Company''s
Registered Office is situated at Mumbai. The Company''s shares are
listed on the Bombay Stock Exchange (BSE) and the Scrip Code is 522134.

The Company was incorporated in the year 1978 and since inception, the
Company has commissioned, on turn-key basis several fuel storage and
handling facility systems. The Company operates in only one business
segment i.e Engineering and Construction for EPC Projects

The Company was referred to the BIFR as a sick company under the
provisions of Section 3 (1) (0) of the Sick Industrial Companies
(Special Provisions) Act, 1985. The Company''s reference as a sick
company was registered under Case No 152/2004 with the BIFR. At the
hearing held on 27th November 2007, the BIFR sanctioned the
Rehabilitation Scheme of the Company and the Order sanctioning the
scheme of rehabilitation was received by the Company on 18th December
2007 (Sanctioned Scheme). The Company has made an application on 17th
October 2013 for extension of the Rehabilitation Scheme as referred
above and pending the final hearing, the Sanctioned Scheme is under
implementation

5 Disclosure in accordance with Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006:

According to information available with the Management and relied upon
by the auditors, on the basis of intimation received from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act), the Company has amounts due to micro
and small enterprises under the MSMED Act as follows

6 The Company is registered with the Board for Industrial and
Financial Reconstruction (BIFR) as a sick company and BIFR has vide its
order dated 18th December 2007 sanctioned the rehabilitation scheme
("the Sanctioned Scheme"). While most of the provisions of the
Sanctioned Scheme have been implemented, the Company was not able to
achieve positive net worth as at 31st March 2013, accordingly, the
Company has filed application on 17th October 2013 to BIFR seeking an
extension and modification of the Sanctioned Scheme. The modification
also includes conversion of Loans of Rs. 4418 Lakh (including interest up
to 31st March 2013 and loan of Rs. 300 Lakh taken during the three months
period ended 30th June 2013, but excluding nterest of Rs. 94.27 Lakh for
the three months period ended 30th June 2013) of the Holding Company as
on 31st March 2013 into 4% Optionally Convertible Cumulative Redeemable
Preference Shares of Rs. 1/- each, which is pending for approval from
BIFR. In view of this, and based on written confirmation from the
Holding Company, no provision has been made for interest payable to it
for the nine months ended 31st March 2014 amounting to Rs. 302.56 Lakh
(includingRs. 99.38 Lakh for the quarter ended 31st March 2014 ). The
Management is considering various alternatives for achieving
profitability and positive cash flow. Based on the current order book
position, operating results for the current year and considering the
continued support of the Holding Company, barring unforeseen
circumstances, the Management is confident about the Company''s ability
to continue as a going concern and the Auditors of the Company have put
an "emphasis of matter"paragraph on the aforesaid matter in the
Auditors Report for the year ended 31st March 2014

7 a. In the opinion of the Management, all Current Assets, Loans &
Advances are approximately of the same value if realized

in the ordinary course of business. Provision for all the known
liabilities and doubtful receivables is adequately made

c. Balance outstanding against Trade Receivable and Trade Payable
(including debit balances), are subject to reconciliation and
confirmation with respective parties. Provision of Rs. 43.37 Lakh
(Previous Year Rs. 78 Lakh) for doubtful debts is made during the year;
resulting in total provision of Rs. 221.37 Lakh as on 31st March 2014

d. Long term Loans and Advances includes Rs. 300.90 Lakh reimbursement
receivable from client. Provision of Rs. 162.63 Lakh (Previous Year Rs.
Nil) has been made during the year

8 Amount due within one year towards Sales Tax Deferment Loan is Rs.
8.04 Lakh (Previous Year Rs. 24.01 Lakh)

9 The net loss on account of exchange rate difference amounting to Rs.
14.54 Lakh (Previous Year Gain of Rs. 9.59 Lakh) has been accounted in
the Statement of Profit and Loss in compliance with AS-11 on "Changes
in Foreign Exchange Rates"

10 Quantitative Details:

a. Erection / Construction Activities:

In respect of Erection / Construction activities, the materials
procured by the Company are directly delivered to the project sites and
charged off in the year of purchase. It is not practicable to furnish
the quantitative information in respect of these items due to
diversified size and nature of business

Mar 31, 2013

1. Corporate Information

Artson Engineering Limited (the Company) is a company limited by shares
incorporated under the Companies Act, 1956. The Company''s Registered
Offce is situated at Mumbai. The Company''s shares are listed on the
Bombay Stock Exchange (BSE) and the Script Code is 522134.

The Company was incorporated in the year 1978. Since inception, the
Company has commissioned on turn-key basis several fuel storage and
handling facility systems. The Company operates in the business segment
of Oil, Gas and Hydrocarbon (OG&H) Industry.

The Company was referred to the BIFR as a sick company under the
provisions of Section 3 (1) (O) of the Sick Industrial Companies
(Special Provisions) Act, 1985. The Company''s reference as a sick
company was registered under Case No. 152/2004 with the BIFR. At the
hearing held on 27th November 2007, the BIFR sanctioned the
Rehabilitation Scheme of the Company and the Order sanctioning the
scheme of rehabilitation was received by the Company on 18th December
2007 (Sanctioned Scheme). The Sanctioned Scheme is presently under
implementation.

b. The amount of interest paid by the company in terms of section 16
of the Micro, Small and Medium Enterprises Development Act, 2006, along
with the amount of the payment made to the supplier beyond the
appointed day during each accounting year is Rs. NIL (Previous Year Rs.
NIL)

c. The amount of interest due and payable for the period of delay in
making payment (where principal has been paid but Interest under MSMED
Act 2006 not paid is Rs. NIL (Previous Year Rs. NIL)

d. The amount of interest accrued and remaining unpaid at the end of
each accounting year is Rs. NIL (Previous Year Rs. NIL)

e. The amount of further interest remaining due and payable even in
the succeeding year, until such date when the interest dues as above
are actually paid to the small enterprise, for the purpose of
disallowance as a deductible expenditure under Section 23 of Micro,
Small and Medium Enterprises Development Act, 2006 is Â Rs. NIL (Previous
Year Rs. NIL).

The above information is given to the extent available with the
Company.

5. The Company is registered with the Board for Industrial &
Financial Reconstruction (BIFR) as a sick company and BIFR has, vide
its Order dated 18th December 2007, sanctioned the rehabilitation
scheme and the same is under implementation. The Company is also in
process of making an application to the BIFR seeking an extension of
the Sanctioned Scheme of rehabilitation. The Management is considering
various alternatives for achieving proftability and positive cash fow.
Based on the current order book position and considering continued
support of the holding Company, barring unforeseen circumstances, the
Management is confdent about the Company''s ability to continue as a
going concern. The accounts have accordingly been prepared on a going
concern basis.

7. a. Majority of the Company''s Fixed Assets have been independently
valued by an independent valuer in the year 2010-11 and considering the
same, there is no impairment in the value of assets as on the Balance
Sheet date.

b. In the opinion of the Management, all Current Assets, Loans &
Advances are approximately of the same value if realized in the
ordinary course of business. Provision for all the known liabilities is
adequately made.

d. Balance outstanding against Trade Receivable and Trade Payable
(including debit balances), are subject to reconciliation and
confrmation with respective parties. Provision of Rs. 78 Lakh (Previous
Year Rs. NIL) for doubtful debts is made during the year, resulting in
total provision of Rs. 178 Lakh as on 31st March 2013.

8. Amount due within one year towards Sales Tax Deferment Loan is Rs.
24.01 Lakh (Previous Year Rs. 3.36 Lakh).

9. In line with accepted practice in construction business, certain
revisions of costs and billing of previous years which have
crystallized during the year have been dealt with during the current
year.

10. Previous year''s fgures have been regrouped and restated wherever
necessary to make their classifcation comparable with that of the
current period.

Mar 31, 2012

1. Corporate Information:

Artson Engineering Limited (the Company) is a company limited by shares
incorporated under the Companies Act, 1956. The Company's Registered
Office is situated at Mumbai. The Company's shares are listed on the
Bombay Stock Exchange (BSE) and the Script Code is 522134.

The Company was incorporated in the year 1978 and since inception, the
Company has commissioned, on turn-key basis, several fuel storage and
handling facility systems and emerged as one of the foremost companies
in the Country specializing in such systems. The Company's expertise
has gradually expanded beyond the Country and has been executing
prestigious overseas contracts as well. The Company operates in the
business segment of Oil, Gas and Hydrocarbon (OG&H) Industry. The
Company was referred to the BIFR as a sick company under the provisions
of Section 3 (1) (O) of the Sick Industrial Companies (Special
Provisions) Act, 1985. The Company's reference as a sick company was
registered under Case No. 152/ 2004 with the BIFR. At the hearing held
on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of
the Company and the Order sanctioning the scheme of rehabilitation was
received by the Company on 18th December, 2007 (Sanctioned Scheme). The
Sanctioned Scheme is presently under implementation.

2. Contingent liabilities not provided for:

a. (i) Bank Guarantees issued by the Company to its clients Rs 1,367.03
Lakh (Previous Year Rs 1,694.60 Lakh).

(ii) Bank Guarantees issued by Bankers of Tata Projects Limited on
behalf of the Company to the Company's clients. Rs 1,916.99 Lakh
(Previous Year Rs 2,279.79 Lakh).

c. Capital Commitment of Rs 0.41 Lakh (Previous Year Rs Nil) on account
of orders floated in market for purchase of Capital Goods.

d. Income Tax of Rs 333.79 Lakh for which Appeals are pending.

c. Provision for Income-tax under normal provision of Income Tax Act,
1961 is not made as there are carry forward losses; MAT u/s 115 JB of
Income-Tax Act, 1961 is not applicable as the Company is a Sick Company
within the meaning of Section 3 (1) (O) of the Sick Industrial
Companies (Special Provisions) Act, 1985.

3. The Company had received an order from BIFR dated 18th December,
2007 and same is under implementation. Accumulated losses have exceeded
share capital and reserves. In the current year, there are cash losses.
Tata Projects Ltd. being the holding Company has provided substantial
financial assistance which is more than the negative net worth of the
Company. Present order book position of the Company is good and
expected to be executed soon. Therefore with present orders in hand to
be executed in F.Y. 2012-13 and further orders expected to materialize,
the Management expect to have a better Cash Flow during the F.Y.
2012-13 and years ahead. Therefore, barring unforeseen circumstances,
the Management is of the opinion that the concept of going concern is
sustainable, and that the plans are afoot to wipe out the negative net
worth of the Company.

4. In the event of Arbitration award in favour of the Company, any
amount so received is treated as income in the year of receipt of
award. During the year Company is not in receipt of any arbitration
award.

5. Majority of the Company's Fixed Assets have been independently
valued by an independent valuer in the preceding year and considering
the same, there is no impairment in the value of assets as on the
Balance Sheet date.

6. a. In the opinion of the management all Current Assets, Loans &
Advances are approximated of the same value if realized in the ordinary
course of business. Provision for all the known liabilities is
adequately made.

c. Balance outstanding against sundry debtors and sundry creditors
(including debit balances), are subject to reconciliation and
confirmation with respective parties. The provision of Rs Nil (Previous
Year Rs 100 Lakh) is made for doubtful debts. In the opinion of the
management the balance amounts are good and recoverable/payable.

7. Amount due within one year towards Sales Tax Deferment Loan is Rs
3.36 Lakh (Previous Year Rs 6.79 Lakh).

8. The Company has lodged an insurance claim in the last Financial
Year. The claim was accepted by Insurance Company for Rs 66.03 Lakh and
the balance amount of Rs 16.68 Lakh is claimed as an Extraordinary item
being Loss by Fire during the year.

9. The net gain on account of exchange rate difference amounting to Rs
43.31 Lakh (Previous Year Loss Rs 7.93 Lakh) has been debited to the
Profit and Loss Account in compliance with AS-11 on "The Effect of
changes in foreign Exchange Rates".

10. Quantitative Details:

i. Erection/Construction Activities

In respect of Erection/Construction activities, the materials procured
by the Company are directly delivered to the project sites and charged
off in the year of purchase and included under
"Construction/Operating expenses". It is not practicable to furnish
the quantitative information in respect of these items due to
diversified size and nature of business.

ii. Manufacturing Activities

The commercial operations at Nasik Factory commenced with effect from
10th November 2010. The relevant quantitative details are as follows:

11. In line with accepted practice in construction business, certain
revisions of costs and billing of previous years which have
crystallized during the year have been dealt with during the current
year.

12. Previous year's figures have been regrouped and restated
wherever necessary to make their classification comparable with that of
the current period.

Mar 31, 2010

1. Contingent liabilities not provided for:

a. (i) Bank Guarantees issued by the Company to its clients Rs.
56,916,185/- (Previous Year - Rs. 307,500/-).

(ii) Bank Guarantees issued by Bankers of Tata Projects Limited on
behalf of the Company to the Companys clients Rs. 227,978,706/-
(Previous Year - Rs. 230,778,706/-).

(iii) Letters of credit issued by the Companys Bankers to one of the
supplier Rs. 2,048,438/- (Previous Year Rs. NIL).

2. The Company has received the BIFR order dated 18th December, 2007
which is under implementation. The Company had preferred an appeal to
the AAIFR with reference to the above order in respect of issues
relating to Tax matters i.e. Income Tax & Service Tax, application of
SEBI guidelines, exemptions from Clause 49 of the Listing Agreement
with the BSE and property/house rent tax by Nashik Municipal
Corporation during operation of the Scheme. Company has received an
Order from AAIFR dated 1st January, 2009 specifying waivers of the
above mentioned taxes and penalties and accordingly the Company has
given the effects. The Company has also received an Order dated 3rd
December 2009 from the BIFR whereby the Company has been granted
exemption upto 31st March 2011 from complying with Clause 49 of the
Listing Agreement with the BSE.

3. Disclosure in accordance with Section 22 of the Micro, Small and
Medium Enterprises Act, 2006:

The Company has initiated the process of obtaining confirmation from
suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on
the information available with the Company, the balance due to Micro
and Small Enterprises as defined under the MSMED Act, 2006 is Rs. 42.95
Lakh, but interest for the delay in payment is not provided as the
management is of the opinion that due to contractual terms liability of
interest will not arise.

4. The Company has received an order from BIFR dated 18th December
2007 and same is under implementation. In spite of accumulated losses
being exceeding share capital and reserves, in lieu of the large new
orders being received and commenced barring unforeseen circumstances,
the Management expects to continue as going concern.

5. In respect of Sundry Debtors in arbitration, Company had written
off Debtors amounting to Rs. 13.84 Crore in earlier years. In the
event of Arbitration award in favour of the Company, any amount so
received is treated as income in the year of receipt of award. During
the year the Company has received an arbitration award amounting of Rs.
62.13 Lakh which is included in sales.

6. a. Majority of the Companys Fixed Assets have been independently
valued by an independent valuer in the preceding year and the valuation
is much higher than the book value resulting in no impairment in the
value of assets.

b. Verification was carried out by an independent firm of Chartered
Accountants during the year at all major domestic locations including
Nashik unit, and based on its report, the Company has made the deletion
in Gross Block for Rs. 4,925,712/- and in Depreciation for Rs.
3,813,446/- with regards to discarded assets as shown in Schedule - 4
in the Accounts.

7. a. In the opinion of the management, all Current Assets, Loans &
Advances are approximated of the same value, if realized in the
ordinary course of business. Provision for all the known liabilities
is adequately made.

c. Balance outstanding against sundry debtors and sundry creditors
(including debit balances), are subject to reconciliation and
confirmation with respective parties. In the opinion of the management,
the amounts are recoverable and considered good.

d. Cash and Bank balances includes an amount of Rs. NIL (Previous Year
- Rs. 3,637/-) which are in the personal bank account of staff at sites
and cash lying with them.

8. The net exchange rate difference amounting to Rs. 16,989,937/-
(Previous Year - Rs. 9,410,919/-) has been debited to the Profit and
Loss account in compliance with AS-11 on "The Effect of changes in
Foreign Exchange Rates".

9. (i) Erection/Construction Activities

In respect of Erection/Construction activities, the materials procured
by the Company are directly delivered to the project sites and charged
off in the year of purchase and included under "Construction/Operating
expenses". It is not practicable to furnish the quantitative
information in respect of these items due to diversified size and
nature of business.

(ii) Manufacturing Activities

During the year and Previous year, no such activity is carried out in
Manufacturing Division.

10. (a) Necessary approvals of the Members and the Central Government
pursuant to the provisions of the Companies Act, 1956 read with
Schedule XIII thereto are being obtained for payment of reimbursement
of medical expenses of Rs. 175,709/- incurred by Mr. P. S. Chopde,
Executive Director-Manufacturing.

(b) The Company has filed an application pursuant to the provisions of
the Companies Act, 1956 read with Schedule XIII thereto, with the
Central Government seeking its approval for payment of excess
remuneration to the extent of Rs. 492,000/- in respect of payment of
remuneration referred to in 19(H) above.

11. The Company has paid the Gratuity amount of Rs. 3.50 Lakh to one
of the employees, the claim settlement is Pending with Life Insurance
Corporation of India.

Leave Encashment has been provided as per actuarial valuation at Rs.
382,330/-, and excess balance from the earlier year is charged to
employee cost.

12. In line with accepted practice in construction business, certain
revisions of costs & billing of previous years which have crystallized
during the year have been dealt with during the current year.

13. Previous years figures have been regrouped and restated wherever
necessary to make their classification comparable with that of the
current period.